Tax reconciliation payrolls and debits

As each payroll is processed, Gusto debits the appropriate payroll taxes that apply to your company. We then file and pay all of your quarterly and annual taxes. 

If adjustments are made to your account that affect the amount of taxes owed, you may be liable to pay more to the federal and state agencies. To calculate and apply these adjustments, a tax reconciliation payroll is run. This will often create a debit for the amount owed based on the new tax amounts, though sometimes it may result in a credit or refund if taxes were overpaid. This tax reconciliation debit ensures that the correct tax amounts have been paid to each agency.

Note: If your company has multiple bank accounts set up, we'll debit the 'default' bank account on file.

Tax reconciliation causes

Here are the types of circumstances that would lead to a tax reconciliation payroll. Tax reconciliations can be run by our Care team in response to one of these situations, though they also occur on a quarterly basis to correct any tax discrepancies ahead of tax filings.

View your tax reconciliation debit(s)

  1. Go to the Reports section.
  2. Scroll to find the "Tax Reconciliation History" tile and click View
  3. Under the "Actions" column, click View details next to the tax reconciliation payroll you want to view.

To download the summary of a specific reconciliation, scroll to the bottom right corner of the reconciliation details page and click Download

Tax reconciliation email(s)

Tax reconciliation emails are sent when a reconciliation payroll is run and it results in a debit greater than $5.00. This can occur quarterly, or any other time a reconciliation payroll is needed to be processed.

The email will notify you of the adjustment period, the last four digits of the bank account that will be debited, the debit date, any applicable taxes, and the total debit amount. The debit typically occurs a few business days after you receive the email. In certain cases, you may receive an email about a refund from Gusto as well. We’ll also let you know if there is any action required on your end.